OCC stops reputation risk examinations

The Office of the Comptroller of the Currency (OCC) announced that it will no longer assess reputation risk as part of its examinations of regulated institutions. As part of this shift, the agency also removes references to reputation risk from its Comptroller’s Handbook booklets and supervisory guidance.

“The OCC’s examination process has always been rooted in ensuring appropriate risk management processes for bank activities, not casting judgment on how a particular activity may fare with public opinion,” said Acting Comptroller of the Currency Rodney E. Hood. “The OCC has never used reputation risk as a catch-all justification for supervisory action. Focusing future examination activities on more transparent risk areas improves public confidence in the OCC’s supervisory process and makes clear that the OCC has not and does not make business decisions for banks.”

See the OCC’s full statement here.